Firstcall Research is bullish on TCPL Packaging and has recommended buy rating on the stock with a target price of Rs 82 in its February 25, 2013 research report.

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Firstcall Research is bullish on TCPL Packaging and has recommended buy rating on the stock with a target price of Rs 82 in its February 25, 2013 research report.

“TCPL Packaging Ltd, formerly 21st Century Printers Ltd was incorporated in August 1987. It is one of leading and largest manufacturers of folding cartons in India. The company began commercial production at its plant at Silvassa, Union Territory of Dadra & Nagar Haveli, in April 1990, with a web-fed printing machine equipped with an in-line die cutter. TCPL became the first printing and packaging unit in India to have been certified 1SO 9002. It added a state-ofthe- art six color offset printing machine at its plant and got all set to take on the future in the year 2001.The company started supplying printed cartons to almost all FMCG manufacturers in India, but exports were also growing at a very fast pace. It felt the need for an additional manufacturing unit to service its customers in the northern region of India.”

“The company’s net profit jumps to Rs.38.34 million against Rs.16.34 million in the corresponding quarter ending of previous year, an increase of 134.64percent. Revenue for the quarter increase 21.92percent to Rs.950.32 million from Rs.779.47 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.4.41 a share during the quarter, registering 134.64percent increase over previous year period. Profit before interest, depreciation and tax is Rs.146.36 millions as against Rs.104.45 millions in the corresponding period of the previous year.”

“At the current market price of Rs.72.80, the stock P/E ratio is at 4.49 x FY13E and 3.37 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.16.21 and Rs.21.60 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 22percent and 44percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 3.15 x for FY13E and 2.70 x for FY14E. Price to Book Value of the stock is expected to be at 0.79 x and 0.64 x respectively for FY13E and FY14E. We recommend ‘buy’ in this particular scrip with a target price of Rs.82 for medium to long term investment,” says Firstcall Research report.

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